First premiership

Domestic policies

Pierre Trudeau, a strong federalist and a member of Pearson’s cabinet, was elected leader of the Liberals after Pearson and led the party to a decisive victory in Canada and Quebec. Trudeau’s rule was highly personal, his ideas clear, precise, and inflexible. Never before had Canada been governed by a prime minister of personal assurance bordering on the arrogant and flavoured by the autocratic. Nevertheless, Trudeau dominated the political history of Canada through most of the period from 1968 until the early 1980s.

Trudeau’s influence on Canada arose from two circumstances: the uncertainty introduced into Canadian politics by the rise of separatist feeling in Quebec and the national feeling that Canada needed to remake its constitution to fit the circumstances of the late 20th century. Trudeau, a constitutional lawyer flatly opposed to separatism, seemed superbly equipped to handle Canada’s chief issues. At the same time, he was impeccably French, the answer to the need of the Liberal Party for a French leader and to that of Canada for a French champion of the federal union. As such, Trudeau was free to complete Pearson’s work in providing for a bilingual and bicultural Canada. In 1968, with the support of all parties, the Liberal government introduced the Official Languages Bill, which prepared the way for a bilingual federal civil service and for the encouragement of the French language and culture in Canada. (Similar encouragement was given to other ethnic cultures.) The foremost legislation of Trudeau’s early years in office, the bill was designed to begin a new relationship between the English and French in Canada.

Trudeau was chiefly concerned with maintaining the unity of Canada and the good relations of English and French Canadians, which became the specialty of the Liberal Party in Quebec, both federal and provincial. Under a new leader, Robert Bourassa, the provincial Liberal Party, strongly committed to maintaining the federal system and to demonstrating the benefits of that system for Quebec, swept back into office in 1970. The electoral success and energetic policy of large investment and rapid development of Quebec’s Liberals drove the separatist Parti Québécois into the background of provincial politics, though the Bourassa government was at the same time strongly provincial and determined to campaign energetically for Quebec’s interests. Thus, in 1971 at the constitutional conference held at Victoria, British Columbia, Bourassa claimed a special position for Quebec. Despite broad agreement, Quebec at the last moment withdrew its assent to a revised formula regarding proposed federal control over social security, and the path of constitutional reform was blocked.

At the same time, the province and the city of Montreal began to commit enormous public expenditures for building projects and amassed a huge public debt. This increasingly alarmed the populace and augured ill for the future of the federalist party of Quebec. The Olympic Games of 1976, the most visible example of the new expenditures, were enormously expensive. In grandiose expenditure, however, Quebec did no more than lead the way. The Trudeau government, following a policy of heavy public expenditure initiated by Pearson (and emulated by all the provinces), pursued economic growth based on government direction and spending. The result was a high tax burden and frequent budget deficits.

During the Trudeau years, however, the Canadian economy came of age, sometimes despite the government’s policies. Canada continued to be a major supplier of foodstuffs and raw materials to the world during the boom decade of the 1970s, but the proportion of people employed in manufacturing and the value of industry’s exports surpassed those for primary products. The west benefited greatly during the boom years. Minerals, on which the economy of British Columbia depended, found ready markets at high prices in the United States and the Pacific Rim countries. Roberts Bank, one of the world’s largest ocean coal depots, was built near Vancouver to expedite the shipment of British Columbian coal to Japan. Saskatchewan’s potash and uranium commanded premium prices during those years, and international demand for wheat, beef, and other farm products brought prosperity that matched the inflation-generated increase in land values. No province benefited more than Alberta, where escalating world petroleum prices brought wealth previously unimaginable and a tremendous land and construction boom—along with runaway inflation—in Edmonton and Calgary.

The increase in the oil and natural gas prices sparked exploration in frontier areas such as the Beaufort Sea and the Arctic Archipelago. Some of this exploration was aided by a variety of federal grant incentive programs and carried out by Panarctic Oils Ltd., a consortium jointly funded by the federal government and private sources. Fearing that foreign capital would permanently dominate the Canadian oil industry, the Trudeau government created the integrated, crown-owned Petro-Canada in 1975.

Prosperity kept pace in Central Canada. The Canada–United States Automotive Products Agreement (Autopact), concluded in 1965, finally began to pay dividends as U.S.-owned carmakers built new assembly plants in Ontario and Quebec. Tens of thousands of new jobs were created in the automobile and auto parts industries, and Toronto quickly passed Montreal as Canada’s financial capital. Although much of Atlantic Canada was underperforming, it, too, experienced some prosperity as foreign auto and tire manufacturers began to establish plants there.

Canada’s economic growth was accompanied by high inflation, and by the mid-1970s the government was preoccupied with the fight against rising prices and the wage increases that usually followed. In 1975 the federal government created the Anti-Inflation Board and imposed wage and price controls for a three-year period. The move was supported by business but incensed the labour movement, which called for a one-day national general strike in October 1976.

Foreign affairs

In 1970 the Trudeau government unveiled a foreign policy that focused on three aims: preserving Canada as an independent political entity, maintaining its expanding prosperity, and constructively contributing to human needs. In 1970–72 Canada scaled back its contribution to NATO, reducing the number of its military and civilian personnel and military bases in Europe. Trudeau’s government also established diplomatic relations with the People’s Republic of China in October 1970, and by 1973 the two countries had negotiated most-favoured-nation trading arrangements. Trudeau’s attitude toward the Cold War and the Soviet Union was decidedly ambiguous. Initially he improved relations with the Soviets, believing that closer ties would restore balance to Canada’s international position and deemphasize Canada’s role as a partisan of the West, but Trudeau did not contest fundamental U.S. policy regarding the Soviet Union, the Middle East, and even American involvement in the Vietnam War in Southeast Asia. Despite Trudeau’s cautious and skeptical view of the United States, he ultimately respected the realities of American power. Canada also sought closer relations with the EEC and played a more active role in the UN. During the 1970s Canada extended its fishing rights and reaffirmed Canadian sovereignty in its Arctic islands and their icebound waters.

The goal of protecting Canada’s economy led to adjustments in relations with the United States. In 1970 Canada increased the price of petroleum and natural gas sold to the United States, and in 1974 a plan was announced that would gradually reduce those sales and end them by 1982. This action was taken to protect domestic supplies of fossil fuels in the face of increasing prices of imported oil used in the eastern provinces. In 1978 Canada initiated purchases of new airplanes and other military equipment to better defend its borders and fulfill its international commitments.

In attempting to contribute to human needs across the globe, Trudeau’s government expanded the country’s foreign aid efforts and pursued a policy promoting the international control of nuclear weaponry. Canada undertook efforts to reduce pollution in its coastal waters, signing with the United States in 1972 the Great Lakes Water Quality Agreement to control pollution of the lakes.

In consultations with the government in 1968–69, Canada’s Indians sought special rights and settlement of their outstanding treaty claims. However, the Trudeau government rejected most of the Indian demands and sought instead to abolish the Indian Act and eliminate Indian status. Indian groups strongly protested the new policy and forced the government to withdraw its proposals; the protest led to a sharp increase in Indian political activism during the 1970s. Provincial and territorial Indian organizations flourished. At the national level, Indians were represented by the National Indian Brotherhood (now the Assembly of First Nations), while Métis and nonstatus Indians were represented by the Native Council of Canada. These and other organizations advocated policies including aboriginal rights (recognized in the Constitution Act [Canada Act] of 1982), improved education, and economic development. In 1983 a government report recommended the establishment of new forms of self-government, and since that time efforts to increase Indian autonomy have continued. In 1992 the Inuit approved a land-claim settlement that by 1999 would create the new territory of Nunavut (“Our Land”) out of the eastern two-thirds of the Northwest Territories.

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